Although, it is expected for a junior oil and gas co., the financials are far from "Clean". They are "Qualified" in accounting parlance. ".,,The Company has a history of operating losses and as at June 30, 2022 had a working capital deficiency of $83,478,546 (December 31, 2021 - $31,146,332) and an accumulated deficit of $317,364,980 (December 31, 2021 - $310,550,720). The ability of the Company to continue as a going concern is dependent on securing additional required financing through issuing additional equity or debt instruments, the sale of Company assets, securing a joint farm-out for its Petroleum Production Licences (“PPLs”), or securing a partner for the deepwater port project. As a result and given the Company’s capital commitment requirements under the Company’s PPLs outlined in note 9, the Company does not have sufficient cash flow to meet its operating requirements for the 12 month period from the statement of financial position date. The Company has been successful in raising financing in the past, where recently the Company was able to raise $35 million through a convertible loan (see Note10 for detail), and believes in the viability of its strategy and that the actions presently being taken provide the best opportunity for the Company to continue as a going concern, there can be no assurances to that effect.
These unaudited interim condensed consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern. Accordingly, they do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities and commitments..,It is not possible to predict whether the Company will be able to raise adequate financing or to ultimately attain profitable levels of operations."